If access to your devices or data will be selectively granted to specific people, how will those people be authenticated? IoT plays a huge role in the financial sector; it has the potentials of changing the financial and banking sectors. Such third parties may access, compromise, and use sensitive confidential information without the owner’s permission or knowledge. Here, we look at some novel examples of IoT in retail banking. And since that IoT data is not always originating from financial organizations, it’s often left exposed or poorly protected. To maximize the potential gains of data collection, institutions must extract the most actionable insights, and this is where artificial intelligence (AI) can help. • Make transactions easier: Imagine making payments without the need for cash or credit cards but with biometrics such as voice and face recognition. • IoT simplifies daily operations by reducing dependency on the human workforce.• It can also be used to facilitate financial operations such as saving and spending pattern analysis, estimation of balance, as well as financial planning.• Devices powered by IoT (microsensors and wearables), can be used to enhance productivity manifold of an employee and always keeps them connected.• IoT provides robust security of data through its many authentication tools• It can be used to facilitate effective risk management in financial organization by gathering real-time data of assets of clients• IoT technology drives automation in investment and trading because it provides real-time market surveillance and pricing engines which investors can use to monitor market trends and strategize accordingly.• IoT can be used by providers to enhance customer satisfaction by adopting geolocation marketing strategies. To account for this, organizations with customer-related IoT data must communicate what data is being gathered from customers and what the company intends to do with that information. Some of the early examples come from the auto insurance industry. As IoT impacts on the banking industry over the next five to ten years, there will also be new security challenges for banks to manage. IoT technology can enable banks to have better control over a customer’s mortgaged assets, such as cars, and also monitor their health. Yet the IoT offers retail banks an opportunity to gather more information on customers, offer more personalized experiences and improve efficiencies. For instance, the Commonwealth Bank of Australia has already completed the first global trade transactions between two banks using blockchain smart contracts and the IoT.• Smarter branches: Use of IoT technologies also lead to the creation of smarter branches which may be a threat to the retails bank branches but provides better customer experience. Most of these devices can tell if you are away from your home, If attackers were to compromise the device, they could turn on the heat in the summer or shut the heat off during winter when temperatures are below 0 … In short, IoT devices offer improved customer service and greater business efficiency, but the benefits of the IoT in financial services cannot be realized simply by purchasing IoT devices — that’s just the beginning. And how can organizations make use of it? Current customers can perform transactions using wearable and car-based IoT devices, and new customers can be signed up for financial services using mobile devices at special events, trade shows or malls. In fact, research has shown that there will be high growth in the use of IoT in the financial industry with its market estimated to increase to $25 billion by next year. This can only be solved if there is only one supplier of these IoT devices and even at that, the monopoly will damage the economic situation of the entire world.• IoT technologies are complex: A lot of people find it difficult understanding what IoT technologies are all about because they are quite complex to use. Some of the benefits of IoT for banking include the following: • It saves time and simplifies work processes• It provides insight for banks to understand customers’ needs. This will lead to creating a new system that will enable increased productivity and higher profitability in all sectors. IoT devices are notorious for security vulnerabilities — in 2017, nearly half of all companies using an IoT network had been the victim of a security breach. Many banks now provide various types of apps for wearables like FitPay, Apply watch and others. Read more: Internet of Banking & Payments: where every device is a payment device. There are various ways in which IoT can be used in the financial sector. IoT technologies as mentioned earlier require the connection of lots of devices through a network; however, if there is a break in that connection or if one of such devices is removed, there would be a complete breakdown in the system thus leading to huge losses. It’s helpful to regard IoT devices as sources of huge quantities of potentially sensitive data on top of the already growing stores of organization data that must be securely and privately managed. The 13 Best Hybrid App Development Frameworks for 2019, Data Warehousing in the Cloud: Amazon Redshift vs Microsoft Azure SQL. One of such industry is the banking and financial sector where stakeholders are continuously seeking new ways of improving customers experience while providing better services. Some of these challenges include: • IoT is prone to hacking: IoT features a whole network of connected devices and software. For instance, smartwatches when connected to customers’ accounts through IoT, allows the person to receive notifications such as alerts, balance as well as reward points. To demystify the IoT a bit, an IoT device is anything with processing power that is not usable as a computing device. And that is why financial and banking institutions that want to adopt the use of IoT technology must only choose hardware from high quality and reputable manufacturers as well as experienced software development companies. Here are some tips for integrating IoT technologies into a financial organization for increased security and business efficiency: Above all, don’t think of the IoT as a tech bandwagon that you must jump on. Although the use of IoT technologies has so many benefits on the banking and financial institutions, some major challenges may be faced by financial institutions when adopting IoT. I write a popular weekly column for Computerworld, contribute news analysis pieces for Fast Company, and also write special features, columns and think piece... read more. That covers point-of-sale (POS) devices, security motion detectors and even internet-connected coffee machines, to name a few. Also, with the introduction of mobile banking where customers can carry out various forms of transactions without visiting the banks and self-assisted customer care services where issues can be resolved by a virtual assistant, IOT helps financial institutions improve customer experience, manage risk, secure funds from cyber attack, and improve the entire banking security system. Consider how authentication will work. Some banks, like Bank of India (pictured) and Idea Bank of Poland, are using the IoT to make mobile ATMs available to their customers. IoT devices can also generate an enormous amount of data, creating additional costs related to storing and securing all that data. At present, this technology is being incorporated into most banking and financial service firms, and the masses are buying heavily into this. Many IoT in financial services devices are ripe targets for cybercriminals because they tend to convey personal information about customers and facilitate money transfers. Internet of Things technology is changing many fields and banking is not an exception. add value to existing systems and processes, security and privacy risks associated with the IoT, latest emerging threats related to the IoT, Understand which devices are part of your IoT infrastructure and where they operate. This amazing technology will do a whole lot of good to the banking and financial firms that adopt its use, © 2019, We are one company, one team – Intellectyx. • Data Analysis: IoT also helps banks and other financial institutions to collect data through the use of digital sensors and mobile apps. With this, banks do not have to waste fund in creating banks where customer demand isn’t on the increase. IoT also prevents fraud through authentication where wearable devices can be used to gather the biometric data of a customer; the combination of such biometrics and strong cryptography make it possible for the information to be secure in the bank’s database. Banks and financial institutions now make use of IoT technologies in reducing fraud cases, detecting risk ahead of time, staying ahead of their competitors and providing better services to their customers. Many IoT devices used in the financial services industry are customer-facing. IoT and Big Data analytics in Banking & Finance: 9 Real-Life Business Examples 1. • It enables financial institutions and banks to manage risk effectively• It enables banks to provide better customer services to clients. Bank customers like IoT solutions due to reduced transaction fees. So IoT in banking industry and other financial services is a technology that is rather difficult to deal with. In other words, it means expanding the capability of the internet beyond smartphones and computers to many other things, environment and processes. Unlike nearly all enterprise technology devices, which are either plugged into the wall or powered by rechargeable batteries, many IoT products are powered by replaceable batteries. A survey found that 64.5% of global banking executives monitored their customers through mobile apps on smartphones, tablets and other digital devices. Increased transparency By using IoT solutions, banks and financial organizations gain real-time data on their own and their clients’ assets (which leads to effective risk management). A survey conducted by SAS, Deloitte and Intel found that 92 percent of respondents reported business improvements after integrating AI with IoT systems. In addition, IoT decision-making often doesn’t include budgeting for security, but greater awareness about the susceptibility of these devices to hacks will likely change that. IoT is an acronym that stands for “Internet of Things.” The IoT concept entails bringing together all things in the world and connecting them to the internet. IoT can be used in the banking industry; some examples include using IoT for ATMs, using devices to help curb spending, having more flexible ways to interact with bank employees and open accounts and using wearables to help efficiency within banks. • Branching out to connected cars: Smart vehicles also provide opportunities for banks to improve their customer’s experience and offers various services through connected cars. All rights reserved. Banking in Covid-19 era. • Determine the right placement of banks and ATMs: IOT provides insight to banks on areas that require more branches and locations where new ATM machines can be installed to meets the customers need. To ensure that traditional banking still yields some fruitful value, the service providers opt for IoT and banking applications. 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